Jet plea for refund rejected by arbitration panel

MUMBAI: Jet Airways, which is involved in a tussle with its failed takeover target Air Sahara, failed to get respite on Tuesday from an Arbitration panel on its plea for refund of Rs 500 crore paid as advance.

Jet had sought refund of Rs 500 crore paid by it as advance to Air Sahara along with interest after a takeover deal was reached in January last year, but the Arbitration Tribunal declined the plea in its hearing here, sources said.

Jet officials were not immediately available for comments.

Justice S P Bharucha and Justice BP Jeevan Reddy, both retired judges of the Supreme Court, are on the panel as nominees of Jet and Air Sahara respectively.

Air Sahara, had in November 2006, filed a claim before the panel for Rs 3,020 crore before and also sought honouring of the Share Purchase Agreement (SPA) reached by the two parties in January.

In its prayer before the Aribtration Tribunal headed by British Judge Lord Stein on November 20, 2006 Air Sahara had sought Rs 3,020 crore from Jet toward execution of the SPA along with recovery of inter-line business revenue that the latter accrued for nearly three months.